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Re:Why Amazon Has No Profits and Why It Works by tim333 on Friday September 05, 2014 @04:55PM (#8276235)
Profit in this case is generally a quantity calculated by accounting rules (US GAAP probably) and is a different thing from wealth created. Amazon has produced a lot of wealth for it's shareholders, enough for Bezos to be worth ~$30bn build spacecraft as his hobby. The difference is more obvious with a company like Facebook. Say they spend $1bn building the company from zero to 500m users and at the same time receive $1bn in ad revenue. Their accounting profit is $0 but their wealth is a lot due to the value of the 500m users. There are advantages to keeping the GAAP profit near zero because you pay no corporation tax that way.
Re:Why Amazon Has No Profits and Why It Works by wodenokoto on Saturday September 06, 2014 @05:10AM (#8277892)
But in the end that wealth is based on people's belief that 500m users can be turned into a profit.